Readcrest Capital & KFK Holding launch €300m JV

Hamburg-based investor Readcrest Capital and KFK Holding, a Cologne-based real estate investment firm, have established a 50/50 joint venture. 

Readcrest Capital project in Dresden

This partnership aims to capitalize on opportunities within the German real estate market by acquiring financially distressed project development companies, recapitalizing them, and bringing their projects to completion.
Both companies will leverage their respective regional networks, capital, and expertise in this venture. They plan to target a project development volume of around €300 mln within the next year, with initial projects already being evaluated.
Rolf Elgeti, CEO of Readcrest, stated: "Project developers in Germany are facing major problems: liquidity in many markets has virtually dried up, financing has become more restrictive and expensive, the construction industry is in some cases struggling, and regulatory and bureaucratic pressure is increasing. This has led to numerous insolvencies and the collapse of supply in many property markets. At the same time, however, demand for housing continues to rise, naturally exacerbating the housing shortage. Logically, this creates opportunities for those willing to enter this market countercyclically, which is part of Readcrest's strategy anyway. With KFK, we now have a partner at our side with whom we can significantly increase our expertise, regional coverage, and capital strength."
Nikan Karimian-Pour, managing partner at KFK, added: "Germany needs homes, not half-finished construction sites, and that's exactly where we come in: we bridge the gap between distressed situations and the urgent need for marketable living space. In doing so, we solve one of the most pressing problems in Germany and ensure contemporary, marketable completions. Readcrest, with Rolf Elgeti, is the ideal partner for us: experienced in special situations, decisive, and with a clear understanding of risk. Our joint approach is pragmatic: recapitalise, simplify, complete. In the end, it's not the announcement that counts, but the completion."